On Friday of last week the USDJPY held firm and reached a high of 153.66 shortly after GMT 09:00, but the rally then stalled. The U.S. January Consumer Price Index (CPI), released at GMT 13:30, came in worse than expected, fueling dollar selling. The pair fell to a low of 152.59 shortly after GMT 17:00, and trading for the day closed at 152.68 yen.

Today the USDJPY gapped down at the open to 152.62 yen. Japan's preliminary fourth-quarter GDP, released at GMT 23:30 (on February 15), came in well below expectations, triggering yen weakness. The pair rose to a high of 153.16 yen at around GMT 01:00. As of GMT 04:00, the pair remains range-bound, fluctuating around the 153.0-yen level.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:00 on February 16), the pair has shown no clear direction since the decline paused, trading sideways in a narrowing range between highs and lows. It would be advisable to follow whichever direction breaks first, whether it is above the near-term high of 153.66 yen or below the near-term low of 152.57 yen.

(20-period Bollinger Band, showing ±1 and ±2 standard deviations)

Today, U.S. markets are closed, and no closely watched economic indicators are scheduled for release.